Financial Math Trivia Quiz! Test

1. A particular car was bought for R75 000. What will the book value of the car be after 5 years if the rate of depreciation is 16% per annum, where the depreciation is based on the straight-line method. (round off to the nearest rand)

15005

14900

15000

15765

2. Fausia and Nonhlanhla each have R1500. Fausia invests her money for 5 years at 10 % per annum compounded monthly. Nonhlanhla invests her R1500 for 5 years at 10% per annum compounded half-yearly. What is the difference in their accrued amounts at the end of the 5 year period? (round off to the nearest rand)

102

56

16

25

3. A man wants to make an investment that will be worth R50 000 after 10 years. What amount must he invest now if interest is calculated at 12% per annum compounded annually. (round off to the nearest rand)

16989

16099

16199

16009

4. A loan of R100 000 is repaid over 20 years by means of equal monthly installments starting 1 month after the loan was granted. The interest rate is 15% per annum compounded monthly. What is the future value of the loan over 20 years. (round off to the nearest rand)

199847

257698

1971549

589362

5. Monwabisi invests R25 000 for 5 years at 12% per annum, compounded annually. Determine the amount that he will receive after 5 years. (round off to the nearest rand)

44058

762

44059

3923

6. Calculate the value of an investment of R10 000 that earns simple interest of 6.75% per annum over 6 months. (round off to the nearest rand)

10335

10328

9949

10338

7. Karabo's investment grows from R7000 to R9304.60 in a period of three years. Interest is compounded quarterly. What is (a) the effective interest rate on investment and (b) nominal interest rate on investment. (round off to 2 decimal places)

9.60%; 9.54%

9.60%; 9.95%

2.4%; 2.52%

3.57%; 7.24%

8. An amount of x rand was invested at an interest rate of 12% per annum compounded quarterly. After 5 years the investment has grown to R1 806.11. Calculate the value of x correct to the nearest rand.

1000

1010

998

2589